I wanted something that completely matched my futon couch. So, I got a sheet set, and for the mattress, I used the fitted sheet, and for the pillow or cushion covers, I made pillow/cushion covers using the other sheet from the same set.
I also have sensitivity issues with different fabrics, so I wanted to have 100% cotton fabric for this. However, the quilting fabrics are too narrow and I would have to piece fabrics together to make the mattress cover. In addition, the quilting fabrics are not cheap...
I went shopping for a good cotton sheet set on a sale, and here they are. I actually find that some cotton sheets are a better quality than some fabrics you buy at a fabric store. So, when I find a good sheet, I will not hesitate to use it for making clothes as well.